I have been trying to warn people about this as well, as have many others such as Bill Holter, Greg Mannarino, Gerald Celente. as well as a few others that I link consistently. People don't understand that this is part of the plan, if not the most important part of the plan!!!
to what degree does the vatican repatriation of assets (to the vatican bank) correspond to the synchronized decline in market value? are they that much of a market maker? hmmm...
if you wanted to create a one-world government and buy up assets on the cheap, and your assets were in dollars...?
I know you can't give financial advice, but should people cash out or hold tight with markets and therefore investments down? The old axiom 'don't sell at a low' is being challenged here. Should people be considering taking their losses and going to a cash position? Depending of course on their individual time horizon.
Individual portfolios have individual priorities and strategies.
I could offer an investment opinion here, but it would be as well informed as someone offering a health opinion under similar circumstances.
Investment gurus love to bloviate about how well they understand the markets... and nearly all of them save the permabears did not see this coming. Even the contrarians at ZeroHedge were caught flat footed on the timing.
I can give free financial advice which is worth every penny.
Seems to me the markets have "discounted" most of the bad news. If there were the slightest inkling that anyone in any government in the world had a lick of common sense, both stocks and bonds could go up a long ways. All government people owe us "reparations" don't they?
The markets probably digest news in about a week. Which is to say the probable adverse events based on last week's bad news are priced in. The probable adverse events based on this week's bad news is being priced in. The probable adverse events based on next week's bad news is not yet being priced in.
Where I differ from his assessment is that Powell is not and should not be held responsible for the careless mismanagement of foreign dollar-denominated debt, much of which is actually in the dark market of derivatives, which globally is estimated by some to be notionally at least a quadrillion dollars (and there are nowhere near a quadrillion dollars to be had to settle up accounts).
This has always been the problem at the core of the derivatives market (and before that the Eurodollar market). Notionally, these markets, through the issuances of dollar-denominated securities, could create even more dollars than the Fed. However, when the margin calls hit, everyone is gobsmacked to discover they need Fed-created dollars to settle up.
Because US banks and financial entities carry exposure to these dark markets, the Fed beginning in 2008 backstopped them with all the liquidity they might need to resolve margin calls and claims in these markets--and double and tripled down on that in 2020 to ensure "liquidity" for the duration of the government-ordered shutdowns. However, with the US derivatives markets valued at around $200 Trillion, there's still not enough fed created dollars to cover everything at face value if the derivatives markets go south like they did in 2007-2008.
But the prudent response to all of this would have been to begin unwinding derivative positions in 2008, and staying out of derivatives altogether going forward. Suffice it to say, that didn't happen. But Wall Street stupidity should not be foisted onto Jay Powell's shoulders.
Could the dollar be at an all time high right now only because it's been the reserve currency for a very long time......and will be the last domino to come crashing down? Considering the world events happening; the Vatican calling all its assets home by Sept 30th, the growth of BRICs and half the world now back on the gold standard, the relentless production of fiat currency by the federal reserve in an unsustainable sky's-the-limit fashion and an impossibly huge debt bubble, the artificial suppression of silver (a finite resource that is essential in so many manufacturing processes).....there are so many signs that there is a looming complete collapse on the horizon. Add that with the WEF's plans right out there in the open to fully enslave all humanity with a one world government and a rigidly controlled global currency, it all seems far too convenient and synchronized not to be related.
Gold is down too. It was in a trading range between $1800 and $2000 for quite some time. Now it's in the low $1600s. Traders are de-leveraging positions.
Okay.....here's the point I'm trying to make, and of course everyone has to use their own discernment; take all of the different pieces into consideration rather than just looking at a single thing that is going on. Yes, gold is at a certain range and has been for a while. The dollar appears very strong right now. But look at all the other events happening in the world ( such other countries beginning to reject the dollar and moving to gold-backed sovereign currencies) and look at the long-range trajectory. Or don't! It's completely up to you. But....the very fact alone that fiat currency is created out of thin air and has no real value other than perceived and that people everywhere are waking up to that fact might be worth considering. Remember, also, that monetary systems throughout history have always had a finite life. We are already at the end of a very long run. Anyone who pays attention to whats been going on in the markets will tell you that the whales began moving into hard assets a while ago and that recently there has been a full-on run toward precious metals, to the point of where now the commercial suppliers have a long lag time between receiving orders and actually filling them. This is very interesting. Catherine Austin-Fitts imo is one of the most rational and credible (and not to mention ethical) financial-minded people on the planet, and she's been saying for a long time that all the value in the current system has been completely sucked out of it......it's an animated corpse with only a superficial appearance of life. Nobody knows for sure where things are going, but if you look at all the different things going on, there is a lot of food for thought.
I believe your premise is incorrect. Modern "fiat" money isn't "created out of thin air". It is borrowed into existence. That means for every dollar or other currency unit out there, there is also a corresponding obligation. This means there is at least the potential for a currency "squeeze". due to de-leveraging. We had the beginnings of one in 2008. Then governments became the borrowers of last resort to kick the can down the road for a while longer. It will be quite interesting to see what happens this time...
It sounds like what you are saying is that it doesn't exist, until by the act of someone borrowing it...it is created? And isn't that pretty much the premise of fractional reserve banking?
Yep. I don't think any western government has engaged in raw printing of true fiat money. And yes, fractional reserve banking can (and usually does) multiply what the government borrows into existence.
However you look at it, it sure seems like creating something out of nothing, regardless of whether it is physical paper or electronic and regardless of who is doing it, though, doesn't it? The only value in it is in the perception that people have of it.
- I don't pretend to know what the future holds, but I do feel very strongly that nothing is as it seems, and that things are not going to be returning to any semblance of what we have considered "normal", probably ever again. Time will tell. Prepare for the worst, hope for the best, and with any luck we will all end up somewhere in the middle.
The near term chances for peace ended the moment Putin announced mobilization. With his declared intent to annex the Donbass his options are now reduced to victory or death.
PNK, could there be more to the Chinese "coup" than Chinese, Asian, Pacific news sources are letting on? What is the feeling from Japan? The fact that the Japanese intel is close to the government of Taiwan could be hoped to give more illumination.
As best as can be determined at this time, someone on Twitter went off on a wild tangent because Xi Jinping hasn't been seen since his foreign trip to Uzbekistan. Ergo, he must have been toppled.
Of course, that completely disregards the reality that Xi self quarantined for a week after visiting Hong Kong, and it is highly probable he has done so again. There were also rumors spread of mass flight cancellations that were demonstrably not true, and Beijing continues to make announcements about the upcoming party Congress mentioning Xi--something they would not do if he had been defenestrated.
Which makes the "coup" rumor a silly social media thing that, until there is actual evidence of someone other than Xi in charge, does not deserve serious consideration.
Can they drop some sort of financial bomb? Yes and no. It's more like China IS a financial ticking time bomb, and has been for years. The same banks which are dealing with the blowback from serial developer liquidity crunches are the same banks that underwrote a substantial part of the Belt And Road Initiative loans abroad--a growing portion of which debt is turning toxic. A considerable amount of global sovereign debt becomes highly iffy if China's economic woes get much worse. Additionally, if China's back gets put against the economic wall they will dump whatever holdings of Treasuries they have left to sustain the yuan for however long they can (which won't be long in that circumstance).
China can't backstop the yuan with higher interest rates and stimulate the economy the way they've been doing. In a meltdown scenario, private Chinese citizens with the means to do so will exploit every legal and illegal means to get their capital out of China and out of the yuan--which means a massive inflow of capital most likely to the US, further goosing the dollar (Jay Powell will love that) at the expense of the pound (Liz Truss will not love that), the euro, and the yen. With Powell continuing to turn the interest rate screw, the next wave of side effects will be third world and emerging market debts, as countries will face unaffordable debt service costs going forward in a new higher interest-rate paradigm.
Essentially, if the Chinese economy goes into total meltdown (i.e., rapid collapse), the shock waves reverberate first over Europe, the UK, and the US, and the secondary waves over just about everywhere else in the world. It would be a global replay of the 1980s Latin American debt crises, but on a somewhat larger scale.
"private Chinese citizens with the means to do so will exploit every legal and illegal means to get their capital out of China and out of the yuan"
If that happens the smart money will sell dollars and buy CNY assets. There are a lot of dumb money in China and they are always the guys who buy at the top.
"Is the ticking time bomb." Kinda my read too, but in the case of the Communists, it is all planned. They always feed off of capitalism, in true revolutionary Communism, it has to end. One thing for sure, no matter what it sure is a hell of a mess!
One thing to remember is one of the statements by a Communist defector.
When asked when they might attack the west, their reply was "No possibility of it occurring until they can't steal from you anymore."
"Then a certainty."
Probably not a bad idea to figure this into things.
China stopped being "Communist" when Mao Zedong died. While the CCP pays lip service to the notion of Communism, ideologically and structurally they are not a revolutionary Communist government but a fascistic oligarchic one.
And no, none of China's collapse was "planned", other than it being the result of piss-poor planning by the CCP. Contrary to the myths about Communist states, very little of what actually takes place is in accordance with any long-term plan. Even Mao's nihilistic Cultural Revolution was little more than a ploy by Mao to reclaim his position at the center of the Chinese government after he'd had his wings clipped somewhat because of the epic egomaniacal fustercluck known as the Great Leap Forward
Good article Peter. Will be linking today as usual@https://nothingnewunderthesun2016.com/
I have been trying to warn people about this as well, as have many others such as Bill Holter, Greg Mannarino, Gerald Celente. as well as a few others that I link consistently. People don't understand that this is part of the plan, if not the most important part of the plan!!!
There's a plan? Indeed.
to what degree does the vatican repatriation of assets (to the vatican bank) correspond to the synchronized decline in market value? are they that much of a market maker? hmmm...
if you wanted to create a one-world government and buy up assets on the cheap, and your assets were in dollars...?
I know you can't give financial advice, but should people cash out or hold tight with markets and therefore investments down? The old axiom 'don't sell at a low' is being challenged here. Should people be considering taking their losses and going to a cash position? Depending of course on their individual time horizon.
Individual portfolios have individual priorities and strategies.
I could offer an investment opinion here, but it would be as well informed as someone offering a health opinion under similar circumstances.
Investment gurus love to bloviate about how well they understand the markets... and nearly all of them save the permabears did not see this coming. Even the contrarians at ZeroHedge were caught flat footed on the timing.
If you have losses at this time, with the S&P at 3600 and the DOW at 29k, you bought in too late / too high.
I can give free financial advice which is worth every penny.
Seems to me the markets have "discounted" most of the bad news. If there were the slightest inkling that anyone in any government in the world had a lick of common sense, both stocks and bonds could go up a long ways. All government people owe us "reparations" don't they?
The markets probably digest news in about a week. Which is to say the probable adverse events based on last week's bad news are priced in. The probable adverse events based on this week's bad news is being priced in. The probable adverse events based on next week's bad news is not yet being priced in.
Ed Dowd talks about the dollar failing up, I'm not sure what to do. Bought some St treasuries yesterday
https://gettr.com/post/p1rszwwda70
Ed Dowd is talking about the liquidity paradox I discussed for paying subscribers a while back.
https://newsletter.allfactsmatter.us/p/powells-paradox-curing-inflation
Where I differ from his assessment is that Powell is not and should not be held responsible for the careless mismanagement of foreign dollar-denominated debt, much of which is actually in the dark market of derivatives, which globally is estimated by some to be notionally at least a quadrillion dollars (and there are nowhere near a quadrillion dollars to be had to settle up accounts).
This has always been the problem at the core of the derivatives market (and before that the Eurodollar market). Notionally, these markets, through the issuances of dollar-denominated securities, could create even more dollars than the Fed. However, when the margin calls hit, everyone is gobsmacked to discover they need Fed-created dollars to settle up.
Because US banks and financial entities carry exposure to these dark markets, the Fed beginning in 2008 backstopped them with all the liquidity they might need to resolve margin calls and claims in these markets--and double and tripled down on that in 2020 to ensure "liquidity" for the duration of the government-ordered shutdowns. However, with the US derivatives markets valued at around $200 Trillion, there's still not enough fed created dollars to cover everything at face value if the derivatives markets go south like they did in 2007-2008.
But the prudent response to all of this would have been to begin unwinding derivative positions in 2008, and staying out of derivatives altogether going forward. Suffice it to say, that didn't happen. But Wall Street stupidity should not be foisted onto Jay Powell's shoulders.
Wow!
Just wow.
Could the dollar be at an all time high right now only because it's been the reserve currency for a very long time......and will be the last domino to come crashing down? Considering the world events happening; the Vatican calling all its assets home by Sept 30th, the growth of BRICs and half the world now back on the gold standard, the relentless production of fiat currency by the federal reserve in an unsustainable sky's-the-limit fashion and an impossibly huge debt bubble, the artificial suppression of silver (a finite resource that is essential in so many manufacturing processes).....there are so many signs that there is a looming complete collapse on the horizon. Add that with the WEF's plans right out there in the open to fully enslave all humanity with a one world government and a rigidly controlled global currency, it all seems far too convenient and synchronized not to be related.
"half the world now back on the gold standard"
What? Who? Since when?
Gold is down too. It was in a trading range between $1800 and $2000 for quite some time. Now it's in the low $1600s. Traders are de-leveraging positions.
Okay.....here's the point I'm trying to make, and of course everyone has to use their own discernment; take all of the different pieces into consideration rather than just looking at a single thing that is going on. Yes, gold is at a certain range and has been for a while. The dollar appears very strong right now. But look at all the other events happening in the world ( such other countries beginning to reject the dollar and moving to gold-backed sovereign currencies) and look at the long-range trajectory. Or don't! It's completely up to you. But....the very fact alone that fiat currency is created out of thin air and has no real value other than perceived and that people everywhere are waking up to that fact might be worth considering. Remember, also, that monetary systems throughout history have always had a finite life. We are already at the end of a very long run. Anyone who pays attention to whats been going on in the markets will tell you that the whales began moving into hard assets a while ago and that recently there has been a full-on run toward precious metals, to the point of where now the commercial suppliers have a long lag time between receiving orders and actually filling them. This is very interesting. Catherine Austin-Fitts imo is one of the most rational and credible (and not to mention ethical) financial-minded people on the planet, and she's been saying for a long time that all the value in the current system has been completely sucked out of it......it's an animated corpse with only a superficial appearance of life. Nobody knows for sure where things are going, but if you look at all the different things going on, there is a lot of food for thought.
I believe your premise is incorrect. Modern "fiat" money isn't "created out of thin air". It is borrowed into existence. That means for every dollar or other currency unit out there, there is also a corresponding obligation. This means there is at least the potential for a currency "squeeze". due to de-leveraging. We had the beginnings of one in 2008. Then governments became the borrowers of last resort to kick the can down the road for a while longer. It will be quite interesting to see what happens this time...
It sounds like what you are saying is that it doesn't exist, until by the act of someone borrowing it...it is created? And isn't that pretty much the premise of fractional reserve banking?
Yep. I don't think any western government has engaged in raw printing of true fiat money. And yes, fractional reserve banking can (and usually does) multiply what the government borrows into existence.
However you look at it, it sure seems like creating something out of nothing, regardless of whether it is physical paper or electronic and regardless of who is doing it, though, doesn't it? The only value in it is in the perception that people have of it.
- I don't pretend to know what the future holds, but I do feel very strongly that nothing is as it seems, and that things are not going to be returning to any semblance of what we have considered "normal", probably ever again. Time will tell. Prepare for the worst, hope for the best, and with any luck we will all end up somewhere in the middle.
It looks like the near term possibility of peace has been destroyed.
https://www.eugyppius.com/p/apparent-sabotage-disables-nord-stream
The near term chances for peace ended the moment Putin announced mobilization. With his declared intent to annex the Donbass his options are now reduced to victory or death.
PNK, could there be more to the Chinese "coup" than Chinese, Asian, Pacific news sources are letting on? What is the feeling from Japan? The fact that the Japanese intel is close to the government of Taiwan could be hoped to give more illumination.
To the best of anyone's actual knowledge, there is no coup in China at this time.
But, why is there a fake "coup."
Are, or could they drop some sort of financial bomb at this time, or would they if they could?
You read these moves better than anybody else I read, is their Intel Financial Security Global Influence that finely coordinated?
As best as can be determined at this time, someone on Twitter went off on a wild tangent because Xi Jinping hasn't been seen since his foreign trip to Uzbekistan. Ergo, he must have been toppled.
Of course, that completely disregards the reality that Xi self quarantined for a week after visiting Hong Kong, and it is highly probable he has done so again. There were also rumors spread of mass flight cancellations that were demonstrably not true, and Beijing continues to make announcements about the upcoming party Congress mentioning Xi--something they would not do if he had been defenestrated.
Which makes the "coup" rumor a silly social media thing that, until there is actual evidence of someone other than Xi in charge, does not deserve serious consideration.
Can they drop some sort of financial bomb? Yes and no. It's more like China IS a financial ticking time bomb, and has been for years. The same banks which are dealing with the blowback from serial developer liquidity crunches are the same banks that underwrote a substantial part of the Belt And Road Initiative loans abroad--a growing portion of which debt is turning toxic. A considerable amount of global sovereign debt becomes highly iffy if China's economic woes get much worse. Additionally, if China's back gets put against the economic wall they will dump whatever holdings of Treasuries they have left to sustain the yuan for however long they can (which won't be long in that circumstance).
China can't backstop the yuan with higher interest rates and stimulate the economy the way they've been doing. In a meltdown scenario, private Chinese citizens with the means to do so will exploit every legal and illegal means to get their capital out of China and out of the yuan--which means a massive inflow of capital most likely to the US, further goosing the dollar (Jay Powell will love that) at the expense of the pound (Liz Truss will not love that), the euro, and the yen. With Powell continuing to turn the interest rate screw, the next wave of side effects will be third world and emerging market debts, as countries will face unaffordable debt service costs going forward in a new higher interest-rate paradigm.
Essentially, if the Chinese economy goes into total meltdown (i.e., rapid collapse), the shock waves reverberate first over Europe, the UK, and the US, and the secondary waves over just about everywhere else in the world. It would be a global replay of the 1980s Latin American debt crises, but on a somewhat larger scale.
"private Chinese citizens with the means to do so will exploit every legal and illegal means to get their capital out of China and out of the yuan"
If that happens the smart money will sell dollars and buy CNY assets. There are a lot of dumb money in China and they are always the guys who buy at the top.
"Is the ticking time bomb." Kinda my read too, but in the case of the Communists, it is all planned. They always feed off of capitalism, in true revolutionary Communism, it has to end. One thing for sure, no matter what it sure is a hell of a mess!
One thing to remember is one of the statements by a Communist defector.
When asked when they might attack the west, their reply was "No possibility of it occurring until they can't steal from you anymore."
"Then a certainty."
Probably not a bad idea to figure this into things.
China stopped being "Communist" when Mao Zedong died. While the CCP pays lip service to the notion of Communism, ideologically and structurally they are not a revolutionary Communist government but a fascistic oligarchic one.
And no, none of China's collapse was "planned", other than it being the result of piss-poor planning by the CCP. Contrary to the myths about Communist states, very little of what actually takes place is in accordance with any long-term plan. Even Mao's nihilistic Cultural Revolution was little more than a ploy by Mao to reclaim his position at the center of the Chinese government after he'd had his wings clipped somewhat because of the epic egomaniacal fustercluck known as the Great Leap Forward